“[Bitcoin] was always a confidence game. All crypto is. And it appears global confidence in just about anything has evaporated,” Novogratz, the chief executive of bitcoin and cryptocurrency management fund Galaxy Digital, said via Twitter.

However, the bitcoin price failed to rally with traditional markets on Friday after U.S. president Donald Trump declared the coronavirus outbreak a national emergency and U.S. treasury secretary Steven Mnuchin pledged to use “whatever tools we need”—sending the three main U.S. stock market indexes up almost 10%.

Bitcoin floundered after pushing towards the $6,000 per bitcoin mark—dropping back some 5% over the last 24-hour trading period.

“The crypto market, after taking a massive hit yesterday, is also extremely fearful right now,” Mati Greenspan, the founder of financial advisory firm Quantum Economics, wrote in a note to clients.

The bitcoin price was heavily sold off over the last week, seriously exacerbating a longer-term … [+] downward trend and sending bitcoin to lows not seen since early 2019.

Coinbase

The bitcoin and cryptocurrency community is divided over how measures undertaken by governments around the world to support markets will impact bitcoin and crypto prices.

“We are seeing a global re-pricing of everything—from oil, to stocks, to bonds, to treasuries, and yes, even bitcoin,” said the chief exeutive of digital asset management group CoinShares, Jean-Marie Mognetti.

“We believe bitcoin is a risk-off asset trading momentarily as risk-on, like other assets that have historically been seen as risk-off are trading in legacy markets. The months and years ahead, as we look at a negative interest rate environment and significant levels of quantitative easing across the globe, will be bitcoin’s true test.”